Pilat Media Sued by Fox Television Stations, Files Counter Claim for Breach of Contract

Posted by Joe Zaller
Jul 13 2011

Pilat Media said that it was informed last month by Fox Television Stations Inc (“FTS”) that FTS wishes to discontinue use of Pilat Media’s IBMS system from 30 September 2011.

Pilat also said at that time that FTS had issued proceedings against Pilat Media claiming damages of an unspecified amount in connection with alleged breaches of contract by Pilat Media.

At the time, Pilat said that FTS’s notification came with no prior warning, and that its board of directors regards FTS’ claims as being wholly without merit.

Today, Pilat announced that in response to the legal actions taken last month by FTS, it has as brought a removal action and counterclaim for breach of contract against FTS in the U.S. Federal Court in New York seeking an injunction and damages to be determined by that Court.

Pilat Media said that for the year ended 31 December 2010 Fox TV Stations represented approximately 3%, or just over $1m, of Pilat Media’s total revenue of $35m (£21.9m).  Pilat also said that FTS-related balances for accrued income (revenues recognized but not yet paid) on Pilat Media’s balance sheet amount to approximately US$4.6 million.

Pilat, which has more than 60 customers worldwide, said it has never before experienced a purported termination of an IBMS implementation project.

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Related Content:

Press Release: Pilat Media Couter Claim against Fox Television Stations

Press Release: Pilat Media Informed by Fox Television Stations of Breach of Contract Suit

Pilat Media Posts Small Loss for First Quarter of 2011

Press Release: Pilat Media Announces Results for the 12 Months Ended December 31 2010

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